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American Healthcare REIT's Impressive Q2 2025 Performance

American Healthcare REIT, Inc. (NYSE: AHR) has recently announced its second quarter results for 2025, showcasing a robust financial performance and a positive outlook for the remainder of the year. Key figures from the quarter reveal a GAAP net income attributable to controlling interest of $9.9 million, translating to a net income of $0.06 per diluted share. Furthermore, the company reported Normalized Funds from Operations (NFFO) of $0.42 per diluted share.

The results show a 13.9% growth in Same-Store Net Operating Income (NOI) compared to the prior year, driven chiefly by successful strategies in its senior housing operating properties (SHOP) and integrated senior health campuses (ISHC), which experienced impressive growth rates of 23.0% and 18.3%, respectively. This strong performance led American Healthcare REIT to close approximately $255 million in new investments year-to-date, including the acquisition of a new SHOP asset valued at around $65 million in the latest quarter.

Executive Insights

Danny Prosky, President and CEO of American Healthcare REIT, expressed confidence in the company’s growth trajectory, stating, "Our fundamentals in the long-term care sector continue to be solid, as demonstrated by our strong growth in the second quarter. This performance has encouraged us to adjust our Same-Store NOI growth guidance upward by 150 basis points, reflecting expectations of 11.0% to 14.0% growth for the year ending December 31, 2025."

In addition to strong operating results, American Healthcare REIT has maintained a strategic focus on capital allocation, having successfully executed a forward sales agreement resulting in net proceeds of approximately $126 million from the issuance of 5,451,577 shares of common stock via its At-The-Market (ATM) program. This strong capital positioning has seen a reduction in the Net Debt-to-Annualized Adjusted EBITDA ratio, which declined from 4.5x to 3.7x.

Transactional Activity and Developments

In the quarter, the company successfully completed multiple strategic transactions, including:
1. Acquisition of new properties: The company purchased five pre-stabilized campuses in a joint venture investment for $118.4 million, further expanding its portfolio and operational capabilities through established partnerships.
2. Sale of Non-Core Properties: American Healthcare REIT disposed of four non-core properties for $33.5 million, optimizing its portfolio for better operational efficiency.
3. Development Pipeline: Although no new development projects were launched in Q2 2025, the company holds a development pipeline with an expected cost of $57.8 million, affirming ongoing strategic growth.

This proactive portfolio management and asset acquisition strategy underscore the company’s commitment to enhancing shareholder value and operational performance.

Full-Year Outlook

American Healthcare REIT has revised its full-year guidance upwards, anticipating continued growth across its core segments. Key guidance figures for 2025 now include:

• - Net income per diluted share projected at $0.35
• - NAREIT FFO per diluted share adjusted to a range of $1.57 to $1.61
• - Total portfolio Same-Store NOI growth guidance set between 11.0% to 14.0%.

Brian Peay, Chief Financial Officer, spoke on the company’s strategic financial positioning, "We are pleased with our capacity to deliver strong NFFO per share growth while also de-leveraging our balance sheet. This reflects the excellent operating performance achieved alongside our distinguished operating partners."

Conclusion

With robust second quarter performance results and significant strategic investments, American Healthcare REIT is well-positioned for continued growth. The company is reinforcing its mission of providing high-quality care by expanding its portfolio with top-tier regional operating partners, ensuring a sustainable and profitable future for its stakeholders. Investors are encouraged to monitor upcoming earnings call scheduled for August 8, where further insights will be shared regarding these developments and the strategic path ahead.